Dropping house prices spur purchases, but is it a real turnaround?

Tuesday

Oct 28, 2008 at 12:01 AMOct 28, 2008 at 9:21 PM

Though the nation faces a worldwide recession, dropping single-family home prices spurred September sales higher than at the same point last year, housing experts say. But it's unclear whether September's figures will turn into a long term recovery for the housing market, some housing experts say.

John Hilliard

Though the nation faces a worldwide recession, dropping single-family home prices spurred September sales higher than at the same point last year, housing experts say.

But it's unclear whether September's figures will turn into a long term recovery for the housing market, some housing experts say.

"We're working through this,'' said Susan M. Renfrew, president of the Waltham-based Massachusetts Association of Realtors.

According to separate reports from the Massachusetts Association of Realtors and Banker & Tradesman publisher The Warren Group, the realtors association reported a 5 percent home sales increase, while researchers with The Warren Group found an 8.5 percent hike in sales.
In September, the median price of single-family homes dropped below $300,000 for the first time since April 2003, researchers for both studies reported.

"A gain in the number of single-family home sales in September is certainly encouraging news. Combined with the decline in the median prices it indicates that the market is moving again as homeowners are becoming realistic about pricing,'' said Timothy Warren, CEO of The Warren Group, in a statement.

But he also noted that significant problems remain, as experts can't be sure whether September's sales data will become a new trend to recovery in the housing market.

Overall, third quarter single family home sales were down this year when compared to the same period in July to September 2007, both reports said. Condo unit sales also dropped in September according to those reports.